Real Estate
New Year, more of the same D.C. housing trends
Sales remain robust in first quarter of 2019
New year, hot market! After a weaker than usual fall market of 2018, the 2019 market came in with a bang. Sales are robust, buyers are entering the market at a rapid pace (more on this later), days on market are short, and off-market activity has increased. So will this fast pace of the market continue throughout the year? What else do we anticipate for real estate in 2019? As I reviewed my 2018 real estate market predictions, I realized that although much has changed since early 2018, much more has stayed the same. So without further ado, here are my predictions for the 2019 real estate market.
AMAZON – HOW REAL IS THE HYPE?
Everyone is asking how much impact Amazon’s HQ2 will have on our area. While it is too early to tell exactly what the HQ2 future holds, we can tell you what we’ve seen so far. A few Amazon executives have already relocated to our area. We are working and have worked with several buyers from Seattle and have seen a couple of others bring offers on our listings. However, this first round of relocations has been limited and hasn’t impacted the market on a large scale.
We have also seen the Amazon effect in two other areas. First, renters (mostly millennials living in D.C., Arlington, and Alexandria) have decided they want to buy before the large relocations begin, causing a buyer influx in the market. The second effect is a significant increase in consumer confidence locally. While the political climate (which we will talk about later) is a bit more unpredictable with furloughs and unstable interest rates, the news of Amazon’s HQ2 has given both buyers and sellers confidence about our local real estate market — always a good thing. With the news of the New York location possibly being reconsidered, this means only good things for our area. You can read more about our predictions for Amazon’s HQ2 at thegoodhartgroup.com.
FEBRUARY 2019 UPDATE
This week, Amazon announced it’s halting plans for its other HQ2 site in Queens, N.Y., due to a lack of support from local government officials and the community. Amazon officials insist that pulling out of the Long Island City location does NOT mean they’re searching for a new HQ2 site. Its expansion plans will proceed focused on the National Landing site outside D.C. and Nashville hub locations. Amazon’s 17 other hubs will absorb the remaining jobs. However, local officials are not ruling out the possibility of more jobs at Amazon’s Crystal City location. Stephanie Landrum, president and CEO of the Alexandria Economic Development Partnership, said the state’s package was structured to allow for the possibility of up to 37,500 local Amazon jobs, an additional 50% on top of the planned 25,000. Of course, more area jobs means only good news for home values in our region.
MILLENNIALS: HIGH EXPECTATIONS
This resurgence of high-end millennial buyers who entered the market in 2018 also created demand for new construction and renovated homes. Why are these younger luxury buyers so interested in newer renovated properties, especially in our historic town? Many are dual-income families who do not have the time, vision, or cash to update an older home. But, these buyers still want their home to look good. We millennials have come of age in a visual society (thank you, Instagram and Pinterest) where we expect everything to look good, all the time.
This desire for new and improved homes has meant intense competition over the few available lots and small homes on lots over 5,000 square feet that could be expanded and renovated.
Unfortunately for many buyers looking for starter homes in our market, most single-family homes in close-in neighborhoods listed under $800,000 were scooped up in multiple offer situations by builders making all cash, no contingencies offers. As a result, many first and second time buyers were edged out of the running.
THE POLITICAL CLIMATE: IT’S ALL ABOUT POTRUXI
So, what in the heck is PoTruXi? ProTruXi is an abbreviation for the three people who will shape the course of the national economy this year.
Po = Jerome Powell, Chair of the Federal Reserve. What the Fed does over the next year will matter, big time. Interest rates have been especially volatile and quite a bit higher than they were at this time last year. It’s been predicted that rates would continue to rise throughout 2019, but we have seen the Fed pump the brakes a bit on their plans to raise rates. Rising interest rates play a huge role in the health of the real estate market as they can dramatically impact affordability. We anticipate rates to rise only subtly this year – versus the expectation at the end of 2018 that they would continue to rise aggressively. This is good news!
Tru = President Trump – and actually, Congress too. What happens here in D.C. has major ramifications for our economy and our real estate market, both nationally and locally. With a Democratic House of Representatives and a Republican Senate, the balance of power could provide to be a positive for the market. Why? Often it means that extremist policy on either side of the aisle is unlikely to be passed which improves consumer confidence. The big unknown locally is how we will weather another possible government shutdown. The January shutdown didn’t have a large impact on our market as a whole. However, if Trump and Congress continue their stalemate, it may cause more of a problem in the future.
Xi = China’s President Xi. The ability to strike a trade deal between the U.S. and China will also matter. The current turbulence around trade is fueling a lack of confidence and stock market volatility. Many U.S. companies are reliant on growth in China and tariffs on construction materials have made both renovating and building less affordable. We already have a chronic shortage of housing, especially affordable housing, so I would anticipate trade becoming more of a hot button issue as we get closer to elections.
THE FUTURE OF TECHNOLOGY
Last year, I predicted biometrics and artificial intelligence would make their appearance as new trends in the industry. Biometrics has become more mainstream in our everyday world as consumers embraced the iPhone X and Clear security at the airport. However, we still haven’t seen it become mainstream in the real estate world but the whispers continue that it is coming.
I also predicted artificial intelligence would become a part of the real estate space and there were significant strides in this arena in 2018, both inside and outside of real estate. On the real estate front, last year I referenced a futuristic sign that could interact with consumers that was “teased” at a conference I attended. In 2018, this sign was unveiled by Compass! In fact, the moment Robert Reffkin, the CEO of Compass, introduced the idea of the sign, a spark of interest about this growing company was ignited for our team. Of course, in June of 2018, we officially joined Compass and are so proud to be a part of a company that is advancing the world of real estate forward. With the hiring of Microsoft’s former Chief of Technology, Compass is also rolling out an artificial intelligence program that will improve both the consumer and agent experiences.
THE REAL STORY OF 2019
While all of these factors will play a role, the real story of 2019 market in the DC Metro areais historically low inventory which is impacting buyers and sellers of all agents in all price points. While our market has experienced low inventory for the last two or three years, we are seeing even more fierce competition and bidding wars already in 2019. After being strategically staged and marketed with a coming soon campaign, one of our listings in Rosemont recently had 13 offers and sold well over asking with no contingencies. This is great news for sellers and not-so-great news for buyers. It will be critical for buyers to work with an agent plugged into the market.
Because of this low inventory, we are seeing more off-market activity, with fewer homes going on the active market.
As a result, most active buyers aren’t even hearing about available homes until they are already under contract.
THE BOTTOM LINE – OUR MARKET IS STRONG
So, what does all of this mean when taken together? More buyers in the market and fewer sellers mean that we are likely going to be in a sellers’ market in 2019. That being said, sellers still need to stage and price their homes appropriately to generate interest in today’s highly visual world. When they do, they are being rewarded with excellent contracts. Sellers can capitalize on the stalemated interest rates and excitement over Amazon. Buyers can lock in still low rates before they rise.
All in all, the first half of 2019 is shaping up to be a strong market. We will be closely watching the political climate and the plans for Amazon’s expansion to see how things look for the second half of the year. In the meantime, if we can help you with your real estate goals in any way, please don’t hesitate to reach out. We are always here to help!
Allison Goodhart DuShuttle is with Compass Real Estate. Led by Sue & Allison Goodhart, they have been named a Top Agent by both Washingtonian and Northern Virginia magazines. Allison can be reached at 703-362-3221 or [email protected].
Real Estate
Tips for buying a house in Rehoboth Beach
And why it’s a great fit for the LGBTQ community
If you’ve ever dreamed of owning a charming beach house where flip-flops are considered formalwear and sunsets are your daily entertainment, Rehoboth Beach, Del., might just be your dream come true. It’s not just a beautiful coastal town—it’s also a long celebrated safe haven and vibrant hub for the LGBTQ community. Let’s dive into why Rehoboth Beach is a fabulous choice and how to make a savvy beach house purchase.
Why Rehoboth Is a Vibe (especially for the LGBTQ community)
1. A Welcoming, Inclusive Community
Rehoboth Beach has been lovingly nicknamed the “Nation’s Summer Capital,” and it’s not just because of its proximity to D.C. For decades, Rehoboth has built a reputation as a warm, inclusive, and LGBTQ-friendly destination. From gay-owned businesses to LGBTQ events and nightlife, this is a town where you can truly be yourself.
2. Packed Social Calendar
Poodle Beach, the LGBTQ beach hangout just south of the boardwalk, is always buzzing in the summer. Events like Rehoboth Beach Bear Weekend, Women’s FEST, and CAMP Rehoboth’s myriad of social and wellness events bring people together all year round. That’s right—you’ll never be bored here unless you want to be.
3. Small Town Charm Meets Big City Culture
You get art galleries, drag brunches, live theater, eclectic cuisine, and adorable boutiques—basically everything your soul craves—without the chaos and crowds of major cities. It’s quaint but never boring. Think: Key West vibes with a Delaware zip code.
Tips for Buying Your Dream Beach House
1. Know Your Budget and Think Long Term. Beachfront and near-beach properties come at a premium. Expect to pay a bit more for proximity to the sand and ocean views.
2. Choose Your Neighborhood Wisely. Do you want to be walking distance from the action on the boardwalk? Or do you prefer something more secluded in areas like North Shores or Henlopen Acres?
3. Rental Potential. If you’re not living there full time, your beach house could work overtime as a vacation rental. Rehoboth Beach has a healthy short-term rental market, especially in peak summer. Often times LGBTQ travelers actively seek inclusive, affirming places to stay.
4. Weather the Weather. Like all coastal areas, Rehoboth comes with a side of salt air and occasional storms. Invest in a good home inspection, especially for older homes, and be prepared for the maintenance that comes with beachfront living (yes, that includes sand everywhere).
5. Work With a Local Real Estate Agent. Look for an agent who knows Rehoboth inside and out and understands the unique needs of LGBTQ buyers. This isn’t just a house — it’s your happy place. You want someone who sees that and says, “Let’s find your sanctuary.”
Buying a beach house in Rehoboth Beach isn’t just about real estate — it’s about finding a space that reflects your lifestyle, values, and need for both community and calm. Whether it becomes your full-time home, your weekend escape, or your Airbnb side hustle, Rehoboth welcomes you with open arms (and maybe a mimosa).
Want personalized tips on navigating the Rehoboth Beach real estate market? Let’s chat! I’ll bring the listings if you bring the sunscreen.
Justin Noble is a Realtor with The Burns & Noble Group with Sotheby’s International Realty, licensed in D.C., Maryland, and Delaware. Reach him at [email protected] or 202-234-3344.
Real Estate
Impact of federal gov’t RIF on D.C.’s rental market
A seismic economic change for local property owners
In a move that could redefine the federal government workforce and reshape the economic fabric of Washington, D.C., President Donald Trump has announced his intentions to significantly reduce federal government spending as well as the number of people the federal government employs.
Calling the federal bureaucracy “bloated” and “out of control,” Trump has repeatedly expressed his desire to cut thousands of federal jobs. While these cuts align with his long-standing push to “drain the swamp,” they come with potential and real collateral damage, especially for landlords in the D.C. area who have relied on government employees as some of their most reliable and long-term tenants.
The potential reduction of thousands of jobs in a city built around government work is not just a political shift—it’s a seismic economic change for the city government as well as for local property owners who have invested in the predictability of a near-constant demand for workers in the federal government agencies, government contractors and the economic ecosystem they sustain.
For landlords, government workers have represented ideal tenants: strong income, long-term leases, and responsible rental histories. Now, that foundation is being shaken in a battle by the Administration against a workforce which is the backbone of the Washington area’s overall economy, and especially its rental market.
With uncertainty looming, landlords are left in a difficult position. If widespread layoffs come to fruition, rental vacancies could spike, rental prices would drop, and previously secure investment properties might become financial liabilities. The sudden shift forces landlords to consider their next moves: how to support tenants facing job losses, how to adapt to a changing market, and how to ensure their own financial stability amid the uncertainty.
For D.C. landlords, this isn’t just about policy shifts or budget cuts, it’s about economic livelihood. The challenge ahead isn’t about just reacting to change, but proactively preparing for it, ensuring they can weather the storm of political maneuvering.
Potential Consequences for D.C. Landlords
- 1. Increased Risk of Non-Payment of Rent
- Job losses may lead to late or missed rent payments
- As affected tenants struggle financially, they may ask to break their lease to live elsewhere or even move out of the region
- Eviction lawsuits may rise, leading to a long and expensive process for landlords, all while not being able to rent their property to paying tenants.
- 2. Higher Vacancy Rates
- If many government employees leave the D.C. region in search of work elsewhere, the rental demand could decline significantly
- Rental properties may sit empty longer, requiring landlords to lower rents to attract new tenants and creating even more financial loss
3. More Competition from Other Landlords
- As many more units are vacant on the market, all competing for the same pool of potential tenants, older and smaller rentals, and those located further out from the core of the city will all struggle to find quality renters.
- Landlords will need to offer other ways to attract and retain tenants, such as incentives, which could quickly overwhelm the finances of smaller landlords who cannot keep up.
Proactive Strategies for Landlords
To mitigate risks and ensure future rental success, landlords should consider these defensive measures:
1. Strengthen Tenant Relationships and Communication
- Encourage tenants to communicate if they anticipate financial hardship due to job loss.
- Work out temporary payment plans or partial payments to prevent full non-payment or eviction.
- Provide guidance on rental assistance programs available in D.C.
2. Offer Flexible Lease Terms
- Consider shorter-term leases than a full 12-month term to accommodate the needs of tenants who may be uncertain about their long-term employment status.
- Offer lease renewals at the same rent amount to keep stable tenants and avoid turnover
3. Diversify Tenant Base
- If a large portion of tenants are government workers, a landlord may want to market to a broader audience or professionals in private industries.
- Advertise on platforms that cater to diverse tenant pools, including students and international workers.
4. Adjust Screening Criteria Thoughtfully
- While it’s important to ensure financial stability, consider creditworthiness, assets, and rental history rather than just employment status.
- Consider alternative income sources, like family members assisting, part-time work or freelance gigs.
5. Protect Cash Flow with Rent Guarantee Options
- Explore rental insurance policies or rent guarantee services to cover losses in case of non-payment.
- Consider co-signers or guarantors on leases for new tenants in vulnerable industries, just in case.
6. Adjust Rental Pricing to Stay Competitive
- Monitor the D.C. rental market and adjust pricing accordingly to attract new tenants.
- Consider offering move-in incentives as a way to stand out. Be creative! Sometimes things you can offer are different and may catch someone’s eye
Long-Term Planning for Rental Success
- Build reserves to cover expenses during potential vacancies or rent shortfalls.
- Invest in property upgrades to make rentals more attractive to a broader audience, such as young professionals or remote workers.
- Consider diversifying property holdings to include areas that are less reliant on government employment.
By taking proactive steps, landlords can safeguard their investments while supporting tenants through economic uncertainty, ultimately leading to a more stable and resilient rental business.
Scott Bloom is owner and senior property manager at Columbia Property Management. For more information, visit ColumbiaPM.com.
As the spring market hits its stride, we are beginning to see more inventory and an increase in days on the market in parts of the DMV. This may result in professional home inspections becoming routine parts of contract offers again. A thorough home inspection can help catch safety issues early and is an opportunity to learn about the operation and maintenance of items in your home.
Pay attention to flickering lights, frequently tripped breakers, and discolored outlets—these are signs of potential electrical hazards. Outdated wiring, overloaded outlets, and faulty appliances can lead to electrical fires.
Structural issues are often overlooked until it’s too late. Crumbling foundations, weak or damaged stairs, loose railings, and uneven flooring can cause trips and falls. Water damage from leaks or flooding can weaken the integrity of floors and walls, creating a risk of collapse.
Toxic chemicals can pose serious threats to health and safety, often without obvious warning signs. Understanding and addressing these risks is crucial for maintaining a safe living environment for you and your loved ones.
Household products such as cleaners, pesticides, air fresheners, and even cosmetics can emit volatile organic compounds (VOCs). These compounds, when inhaled regularly, can cause a range of health issues including headaches, respiratory problems, hormonal disruptions, and in some cases, even cancer. To minimize these risks, homeowners should opt for low-VOC or VOC-free products, ventilate regularly, and consider investing in an air purifier.
Formaldehyde is another common toxin found in pressed wood products, insulation, and certain paints. Long-term exposure can lead to chronic respiratory problems and has been linked to cancer.
Radon gas, another possible carcinogen, is prevalent in the DMV. Your home inspector can do a radon test or there are DIY kits available at many hardware stores. If levels are above EPA standards, a professional remediation firm can install a system that extracts the radon and vents it safely outdoors.
Carbon monoxide (CO), a colorless, odorless gas, is produced by gas stoves, heaters, and fireplaces. Exposure can lead to headaches, dizziness, nausea, and even death. Install CO detectors near bedrooms and ensure that all fuel-burning appliances are properly maintained and ventilated.
Additionally, older homes may still contain asbestos in insulation, floor tiles, or roofing materials. If disturbed, asbestos fibers can become airborne and are highly dangerous when inhaled, leading to serious diseases such as mesothelioma, so when renovating an older home, it’s critical to have materials tested for asbestos before beginning work.
Mold and mildew thrive in damp, poorly ventilated areas such as bathrooms, basements, and around leaky pipes. While some molds are harmless, others can cause allergic reactions or respiratory problems and aggravate conditions such as asthma. Black mold (Stachybotrys chartarum) is notorious for producing mycotoxins that may lead to severe health issues.
Signs of mold include musty odors, visible growth on walls or ceilings, and excessive humidity. Preventing mold growth requires controlling moisture levels—using dehumidifiers and vapor barriers, fixing leaks promptly, and ensuring adequate ventilation. Professional mold remediation may be necessary for severe infestations.
Though banned in residential paints in 1978, lead-based paint still exists in millions of older homes. Lead exposure is especially dangerous for children, causing developmental delays, learning difficulties, and behavioral issues. Adults are not immune – lead can lead to high blood pressure, kidney damage, and reproductive problems.
Even dust from deteriorating lead-based paint can be hazardous. The EPA recommends professional lead testing for any home built before 1978, especially if renovations are planned. Certified abatement professionals can safely remove or encapsulate lead paint.
Improper use of heating equipment, fireplaces, unattended candles, and cooking accidents are common sources of home fires. Smoke alarms and fire extinguishers are essential for early detection and response. Test smoke detectors monthly and change batteries at least once a year.
Homes that are safe for adults may not be safe for children or pets. Small objects, unsecured cabinets, toxic plants, and open staircases can pose significant risks. Childproofing measures such as outlet covers, safety gates, and cabinet locks, along with safe storage of chemicals and medications, are essential precautions.
The good news is that many of these risks can be mitigated with awareness and action. Here are a few simple steps to enhance home safety:
• Conduct a thorough safety audit using checklists available online.
• Ensure proper ventilation to reduce indoor air pollutants.
• Regularly check for leaks and signs of water damage.
• Keep cleaning and chemical products out of reach of children.
• Educate all household members about emergency procedures, including fire escapes and first aid.
Our homes should protect us, not pose threats to our well-being. By identifying and addressing these toxic and unsafe issues, we can transform our living spaces into truly safe havens.
Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH @properties. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.
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